Assembly Bill No. 39: Key Highlights for Sureties in Nevada

The Nevada Legislature modified bonding requirements in Assembly Bill No. 39 (AB 39) concerning construction, remodeling, repair, or improvements to existing, completed single-family residences that are occupied by their owners.  Bonds for such residential contractors in the penal sum of $100,000 may be required if the contractor is not exempted.  AB is now the law, … Continue reading “Assembly Bill No. 39: Key Highlights for Sureties in Nevada”

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License Bond Penal Sum Issues in Nevada

by Kurt Faux & Willi Siepmann In most cases, the maximum exposure of the Surety is the penal sum of the bond. However, there are exceptions when the surety litigates a bond claim and ultimately loses against the claimant. Offer of Judgment Under the Nevada Offer of Judgment rules, a claimant may recover attorney’s fees … Continue reading “License Bond Penal Sum Issues in Nevada”

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Primer on Nevada Contractor License Bonds

For most contractors in Nevada, the Nevada State Contractors Board (“NSCB”) requires the contractor to obtain a license bond or to post a cash bond in order to get a contractor’s license. These bonds vary in amounts between $5,000 and $50,000, with those amounts, which are also known as ‘penal sums’ set by the NSCB depending on the license history of the contractor and the license amount. This article will address the following questions:

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The Assignment Scheme

Attempts to Circumvent the Nevada DMV Dealer Bond Coverage by Financial Institutions Nevada law requires that motor vehicle dealers in Nevada post a $100,000 surety bond. NRS 482.345. Its metes and bounds are determined by statute, specifically NRS 482.345. Per the statute, the bond is “for the use and benefit of the consumer…” NRS 482.345(5). … Continue reading “The Assignment Scheme”

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Can a Lender Recover Against a Nevada DMV Bond as Assignee of a Consumer?

By Willi Siepmann In Nevada only a “consumer” has standing to assert a claim against a motor vehicle dealer bond.  The bond is only “for the use and benefit of the consumer….” NRS 482.345(5).  The term “consumer” is defined as “any person who comes into possession of a vehicle as a final user for any … Continue reading “Can a Lender Recover Against a Nevada DMV Bond as Assignee of a Consumer?”

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New Court Decision Regarding Enforcement of “Pay-if-Paid” Clauses in Construction Subcontracts in Nevada

Many construction subcontracts contain so-called “pay-if-paid” clauses by which the higher-tiered contractor seeks to protect itself from claims by lower-tiered contractors, when the higher-tiered contractor has not been paid by the project owner for whatever reason. Such a clause typically reads like this: Receipt of payment by the Contractor from the Owner for the Subcontract … Continue reading “New Court Decision Regarding Enforcement of “Pay-if-Paid” Clauses in Construction Subcontracts in Nevada”

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Tips on Winning the Collateral Security Motion

Critical to the surety is the collateral security provision of the General Indemnity Agreement. This provision authorizes the surety to obtain funds from the Indemnitor prior to incurring any loss. A typical collateral security provision provides: POSTING OF COLLATERAL – Indemnitors agree to deposit immediately upon demand by Surety an amount equal to the greater … Continue reading “Tips on Winning the Collateral Security Motion”

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Potential Issues in Evaluating DMV Bond Claims in Utah

Over the last several years, Faux Law has litigated and evaluated multiple claims against Utah DMV dealer bonds, and this article will address common issues and problems which have arisen in those claims and cases. As is the case with regards to other types of bonds, evaluating these claims is hampered by some ambiguity in … Continue reading “Potential Issues in Evaluating DMV Bond Claims in Utah”

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They Are Claiming What? More Potential Pitfalls in Handling and Litigating Utah Contractor’s License Bond Claims

By Willi Siepmann, Esq. and Kurt Faux, Esq. The Faux Law Group handles claims against contractor’s license bonds in the states of Nevada, California, Idaho, Wyoming and Utah, and it is in Utah that court rulings have put in doubt some of the most basic principles of suretyship, at least as it pertains to a … Continue reading “They Are Claiming What? More Potential Pitfalls in Handling and Litigating Utah Contractor’s License Bond Claims”

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Potential Issues and Pitfalls in Handling Union Trust Fund License Bond Claims in Nevada

By Kurt Faux & Willi Siepmann Among the most difficult contractor’s license bond claims to handle and evaluate in Nevada are the ones by union trust funds. These trust funds typically administer the benefits which the union negotiates with the contractor pursuant to a collective bargaining agreement, and may include such benefits as health care, … Continue reading “Potential Issues and Pitfalls in Handling Union Trust Fund License Bond Claims in Nevada”

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